Professional Documents
Culture Documents
20X0
A.
DB
300,000.00
A&CL
Able, Capital
Baker, Capital
Cabot, Capital
B.
A&CL
100,000.00
Long-term Debt
C.
Able, Capital
Baker, Capital
18,000.00
18,000.00
Cabot, Capital
18,000.00
A&CL
20X1
A.
A&CL
50,000.00
A&CL
B.
Baker, Capital
82,000.00
Able, Capital
Cabot, Capital
C.
A&CL
12,000.00
Able, Capital
Cabot, Capital
20X2
A.
Able, Capital
Cabot, Capital
129,000.00
129,000.00
Common Stock
Additional Paid in Capital
---OR---
A&CL
258,000.00
Common Stock
Additional Paid in Capital
B.
A&CL
5,000.00
Long-term Debt
C.
A&CL
26,000.00
Retained Earnings
20X3
A.
A&CL
43,000.00
Retained Earnings
B.
Able and Cabot each own 50,000 shares after the stock split.
20X4
A.
A&CL
720,000.00
Common Stock
Additional Paid in Capital
---OR---
A&CL
Stock Issue Cost/ Expense
720,000.00
55,000.00
Common Stock
Additional Paid in Capital
B.
A&CL
68,000.00
Retained Earnings
20X5
A.
A&CL
500,000.00
Bonds Payable
B.
Long-term Debt
150,000.00
A&CL
C.
A&CL
85,000.00
Retained Earnings
20X6
A.
A&CL
111,000.00
Retained Earnings
B.
Retained Earnings
30,000.00
A&CL - Dividends Payable
20X7
A.
Treasury Stock
200,000.00
A&CL
B.
A&CL
152,000.00
Retained Earnings
C.
Retained Earnings
36,000.00
A&CL - Dividends Payable
CR
100,000.00
100,000.00
100,000.00
Long-term Debt
Able, Capital
Baker, Capital
Cabot, Capital
54,000.00
CAPITAL
Long-term Debt
41,000.00
Able, Capital
41,000.00
Cabot, Capital
There are only 2 partners left.
CAPITAL
6,000.00
6,000.00
10,000.00
248,000.00
10,000.00
248,000.00
50,000.00
26,000.00
43,000.00
New Par Value of the Stock Split
$100/1,000=$0.10
The earnings per share is therefore $0.43
$43,000 / 100,000 shares = $0.43
10,000.00
710,000.00
10,000.00
765,000.00
68,000.00
500,000.00
150,000.00
85,000.00
EPS = 0.425
Retained Earnings
CAPITAL
EPS
(180,000 x $0.20)
Common Stock
Additional Paid in Capital
Treasury Stock
RE
CAPITAL
EPS
150,000
10,000
248,000
26,000
284,000
150,000
Common Stock
Additional Paid in Capital
Retained Earnings
10,000
248,000
26,000
CAPITAL
327,000
EPS
$ 0.43
150,000
Common Stock
Additional Paid in Capital
Retained Earnings
20,000
958,000
137,000
CAPITAL
1,115,000
EPS
d Owner's Equity
$ 0.340
No. of Shares
Par Value
500,000
20,000
958,000
200,000
$0.1
303,000
1,281,000
$ 0.555
d Owner's Equity
(111,000) / 200,000
No. of Shares
Par Value
500,000
20,000
958,000
-200,000
180,000
(net of TREASURY STOCK of 20,000)
419,000
1,197,000
$ 0.800
Shares of 190,000
$ 0.844 THIS IS THE ACTUAL VALUE
Theoretically, this is more sound. But in Accounting,
the $0.800 is more viable.
No. of Shares
100
Par Value
$100.00
No. of Shares
200,000
Par Value
$0.1